The Presidents / Chief Executives,
All Banks (Authorized Dealers) / All Islamic Banks in Foreign Exchange
Dear Sir / Madam,
FCY Cross Border Payments / Transfers through SBP Nostros
As per existing practice, the banks provide payment cases related to Asian Clearing Union (ACU), Cash Reserve Requirements (CRR) & Special Cash Reserve Requirements (SCRR) and Deposits/ Withdrawals from Local US Dollar Instrument Collection & Settlement; through State Bank of Pakistan, Banking Services Corporation, Karachi Office (SBP BSC - KO). Further, the banks also send their queries with regard to above payment cases to SBP BSC - KO for clarification, guidance and advice.
In order to bring cross border payments in line with international best practices, State Bank of Pakistan (SBP) has re-engineered its business process by centralizing all cross border payments, including above, at the Treasury Operations Department-SBP (TOD-SBP). Hence, all banks/ Islamic banks are advised to please ensure compliance of following instructions with effect from 1st October, 2022.
- All ACU payment cases / letters addressed to Chief Manager "ACU Section" SBP BSC-KO, shall now be submitted to Director, Treasury Operations Department (Director-TOD), SBP, Karachi as per formats attached at annexure 'A' & 'B'.
- All banks' CRR & SCRR deposits & withdrawal cases / letters (FE25) addressed to Chief Manager "DAD Section" SBP BSC-KO shall now be submitted to Director-TOD as per formats attached at annexures 'C' & 'D'.
- All Local US Dollar deposits & withdrawals cases from Instrument Collection & Settlement (FE2) addressed to Chief Manager "DAD Section" SBP BSC-KO shall now be submitted to Director-TOD as per formats attached at annexures 'E' & 'F'.
- Any queries with regard to above payment cases shall now be submitted to Director-TOD for clarification, guidance and advice.
- The contact details of TOD officers and Standard Settlement Instructions (SSIs) of SBP are attached at annexures 'G' & 'H' for ready reference.
- The contents of this Circular may be brought to the knowledge of all concerned for necessary compliance.
- Please acknowledge receipt.
- Annexure A- Letter for Transfer / Purchase of ACU Dollars
- Annexure B- Letter for Repatriation / Surrender of ACU Dollars
- Annexure C- Letter for CRR & SCRR Deposit
- Annexure D- Letter for CRR & SCRR Withdrawal
- Annexure E- Letter for Deposit to Local US Dollar Instrument Collection & Settlement Account
- Annexure F- Letter for Withdrawal from Local US Dollar Instrument Collection & Settlement Account
- Annexure G- Contact Details of Treasury Operations Department, SBP Karachi.
- Annexure H- Standard Settlement Instructions (SSIs) of SBP